Ku Swee Yong
CEO
International Property Advisor Pte Ltd
Singapore’s rapidly aging population presents a sobering reality: an increasing proportion of our seniors are passing away or becoming mentally incapacitated each year. And most of these families would require advice, guidance and services for the transfer of real estate assets.
A Growing Need for Professional Expertise
In 2022 and 2023, the number of deaths in recorded in Singapore was nearly 27,000 per year, rising from an average of about 21,000 deaths per year in 2017-2019 (pre-pandemic).
As for mental incapacity, the Institute of Mental Health estimated in August 2024 that there are close to 74,000 people in Singapore aged 60 years and above who are suffering from dementia. According to the Agency for Integrated Care, the number will exceed 150,000 persons by 2030.
This demographic shift has boosted the demand for various types of professional services, e.g. lawyers, financial advisers, bankers, government officers in HDB and CPF, and property agents.
Unfortunately for most of us working in these professions, such cases are uncharted territory: we are not well equipped to handle the complexities of inheritance and mental capacity cases. Inadvertently, those who have handled such cases would have experienced delays and misunderstandings in the transactions, adding to the pains and frustrations of grieving families.
Case Studies:
Challenges Faced by Families and Professionals
Three recent examples I have consulted with illustrate the inadequacy of our professional knowledge and experience.
Case 1: Deputies Struggling to Sell a Property
Madam Tan’s dementia became apparent four years ago. At that time, two of her five children were appointed by the court to be deputies under the Mental Capacity Act (MCA).
Recently, as Madam Tan’s medical bills depleted their family’s savings, the deputies appointed a property agent to put Madam Tan’s semi-detached house for sale. A buyer’s offer of S$6 million was accepted by the deputies and the Option To Purchase was granted to the buyer.
While waiting for the buyer to exercise the Option To Purchase, the property agent, acting on behalf of the deputies of Madam Tan, approached several conveyancing lawyers to act for Madam Tan. However, none of the conveyancing lawyers could act on the transaction. This was because the lawyer who assisted in the application to appoint the deputies for Madam Tan’s properties had not included the “sale and disposition of properties” as part of the powers granted by the court.
A new application was made to the court, to include the sale and disposition of Madam Tan’s assets. This took an extra six weeks, with additional financial and emotional costs on the family. Thankfully, the market price remained stable during this period and the buyer did not back out of the offer.
The family now has sufficient cash reserves to meet Madam Tan’s healthcare costs.
Case 2: Challenges in Inheriting and Selling an HDB Flat
Madam KF Wong passed away two years ago, age 90. In her will, it was clear that she wanted her grandson Mr Ken Chin, 35, to inherit the 4-room HDB flat. Mr Ken Chin’s mother was adopted by Madam Wong 60 years ago when she was eight years old. Mr Chin’s mother passed away five years ago.
The court order for Mr Ken Chin’s inheritance of the 4-room HDB flat took two years to be issued. We were given to understand that the court needed to undertake additional due diligence checks since Mr Chin and Madam Wong were not related by blood.
Having gotten the court order that recognised his full ownership of the flat, Mr Chin appointed a property agent to sell the flat. However, additional challenges were faced in that the HDB resale portal still included sections requiring the signature of Madam Wong (already deceased) and Mr Chin having to sit through 5 hours of interviews in opening a bank account that is in Madam Wong’s estate in order to receive the proceeds from the sale of the flat.
Despite the court order recognising a valid will, the HDB and the bank required Mr Chin, the executor and beneficiary, to make multiple adjustments to his work schedule to see to the inheritance and the subsequent sale of flat.
Thankfully in the last two years, the prices of resale HDB flats trended upwards and there was no loss of value for Mr Chin as he waded through the journey.
Case 3: Difficulties in Transferring an HDB Flat to a Non-Singapore PR
Mr Lai is a Singapore PR and he passed away at 70 years age. Mr Lai willed his 3-room HDB flat to Mrs Lai. Mrs Lai, who is not a Singapore PR, is a successful businesswoman managing her family business in Hong Kong.
A lawyer was appointed the executor of Mr Lai’s estate and the liquid assets and bank accounts were smoothly settled. However, the lawyer’s lack of familiarity with the transfer of the HDB flat was complicated by the long-distance communication of documents that required wet ink signatures.
A property agent was appointed for the sale of the flat and a bank account had to be set up to receive the proceeds. Mrs Lai does not have a SingPass account and therefore verifications, authorisations, getting access to HDB for the sale of the flat, payment of S&CC charges and utilities, etc. all presented extra challenges.
This scenario is relatively new to the helpful and compassionate HDB staff members too. The entire process from getting the probate granted until the receipt of the HDB flat’s sales proceeds took 2 years and 8 months.
Recommendations
1. Enhance Knowledge and Capabilities
These gaps in expertise, while understandable given the unprecedented nature of the aging crisis, underscore an urgent need for improvement. The volume and complexity of inheritance and MCA cases will only grow as Singapore’s population ages. Professionals across these industries must take proactive steps to enhance their knowledge and capabilities.
2. Collaboration among professionals
Lawyers and financial advisers need to communicate effectively to ensure that estate plans are comprehensive and executable. Property agents should build partnerships with legal experts to better navigate cases involving contested properties. We also need to be cognisant that the judges presiding over such cases are also learning.
3. Fostering a culture of empathy and cooperation
Singapore’s aging population is not just a social issue; it is a professional one that demands collective action. We can minimise additional burdens on grieving families by taking immediate efforts to address these gaps, so that grieving families will not bear the brunt of inefficiencies and delays.
I would encourage professionals to share their experiences widely, attend more industry networking sessions and pick the brains of those who have handled such cases. Even better, make an enquiry with the professionals at EPPL.
This article was first published in our newsletter, The Custodian Issue 32. Click here to access our latest newsletter
